4 ms·

Seriously, man! I'm broke as hell!

• Simon_says 8y ago
  Serious question: this is what an emergency fund is for, no? You can earn the same income and spend the same dollar amount over your life, but if you build up a buffer of 6 month's expenses, you are no longer chronically broke. This is what I was taught at an early age. Why is this advice not more commonly followed? It's not about being rich or poor or having a high or low income. The advice is truly agnostic to those issues. It's about shifting consumption over the course of your life so that you always have a buffer. Edit: I guess truth hurts.
  • projektir 8y ago
    The average emergency fund can be wiped out quickly by a bad bout of illness.
    • Simon_says 8y ago
      It should go without saying that your emergency fund should exceed the deductible on your insurance. I know there are multi-year illnesses, or illnesses that cause one to become unable to work and keep health insurance, but those situations are exceedingly rare. Being broke, on the other hand, is exceedingly common.